MN | 1070 - 6/16/2022 13:23
How can they do those prices with the price of corn?
Well, ethanol is a significant discount to RBOB for starters. Each bushel of corn produces appx. 3 gallons of ethanol @ $2.70 = $8.10 (with the ddgs, corn oil etc covering the operating expenses)
BUT
the real reason is that RIN values are pretty strong and when you blend E85 you generate excess RINS which you can sell to those who need to buy them for compliance so E85 can be "cheap." |
E85 @ 2.79
